Camden Property Trust (CPT) 26 Jul 192019 Q2 Earnings call transcript

Company Profile

Participants

Kim Callahan	Senior Vice President of Investor Relations
Ric Campo	Chairman & Chief Executive Officer
Keith Oden	President
Alex Jessett	Chief Financial Officer
Nick Joseph	Citi
John Kim	BMO Capital Markets
Trent Trujillo	Scotiabank
Daniel Santos	Sandler O’Neill
Austin Wurschmidt	KeyBanc Capital Markets
Haendel St. Juste	Mizuho
Drew Babin	Baird
John Pawlowski	Green Street Advisors
Karin Ford	MUFG
Hardik Goel	Zelman
Rich Anderson	SMBC

Call transcript

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Operator

Good morning and welcome to the Camden Property Trust Second Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask question [Operator Instructions] Please also note today's event is being recorded.

I would like to turn the conference call over to Kim Callahan, Senior Vice President of Investor Relations. Please go ahead.

Kim Callahan

you Camden's thank Earnings Quarter and Call. Conference morning, for Second joining XXXX Good

our I risks differ statements prepared advise begin future results These we Before remarks, to guarantees not that we current and of be could statements our actual are everyone and would expectations. will making uncertainties on materially forward-looking involve from based performance expectations beliefs. and that to like cause

encourage with these call about found can to the forward-looking SEC Any risks subsequent we opinions represent and today's filings information Further the no in statements and supplement or events. Company because be update these you current on of them. review assumes our made to statements obligation management's

available and Investors at will As our website includes in it be of call. a financial Camden's release the discussed Second reminder, section measures camdenliving.com, complete to Quarter reconciliations non-GAAP XXXX this which on is Earnings

Camden's Oden, Officer. and Chief are today and Executive Chairman me Jessett, Keith Officer; Alex Ric Joining Chairman; Vice Chief Campo, Executive Financial

will limit We one that if our ask have try and two, discuss. today, We hour. call additional remarks or you complete with you to are we in prepared the the call respond everyone after email the queue to unable questions questions items we'd rejoin additional to to If happy the phone within to then queue brief your be be speak to by in concludes.

Ric time, this At Campo. turn to over it I'll

Ric Campo

morning. good and Kim, Thanks

years, of money still today our has music don't of Our on-hold the nothing. our Straits, was courtesy we for capital although Dire decreased over and cost get

it. for employees, stake the customers, that's work, to associates Camden lives of time. experience team culture our the members However, experience improving allows our our our way and one a do you to ain't at and Thanks holders our our that unique

market strong, be to our markets. gets all as continues supply remain fundamentals business multifamily absorbed in good of Our

and accomplished fundings give of rates part the respectively. increase having in real growth designed first in flexibility and quarter. strengthen us over been pipeline X.X% sheet cash this XXXX, cycle. spite have we $X able transactions maximum and equity of we year to these of We our quarter per and Austin earning acquisition originally added debt FFO the to and balance financial in completed increased half the for and the During guidance, share than to our billion FFO the in of X.X%, of Rainey anticipated. the We completed Camden development Street more estate lower

of million acquisition track or our in XXXX, to spite very are for of We meet a environment. exceed difficult $XXX on acquisition original targets

this space future. his President I'd long-term These his responsibilities new opportunity Vice as Stewart senior on like the will to for take in as will his position initiative, part call Chairman. executives to role continue President, Malcolm are Camden. in now of Keith Officer. will creates I to Operating Oden. planning congratulate moves Vice Chief to turn our Executive Keith Malcolm continue Executive the succession of our other over promotion

Keith Oden

Thanks, Ric.

will I to I'd expressed NAREIT Yes, Happy at summer Regarding Camden's Hour address my the that's the concern so to continue title, been like biggest far. co-host new annual meeting.

business. Now to back

year. quarter Our and continued up second for the X.X% strong up results line were sets which were with of us balance for the quarter our X.X% increased revenue guidance, results the for same-store in up Overall, sequentially. revenues

LA-Orange at markets Atlanta up, four were County top Denver X.X%, and at our in growth X.X%, X.X% up. Phoenix X.X%, quarter Second

the with for weakest South X% As the growth and Charlotte, range. in to expected, X% revenue our Florida, quarter were markets Houston

X.X%. blended renewals, new X.X%, on leases rents Regarding up quarter new renewals a increase were leases second up and were and X.X% of for

for on was growth improvement preliminaries are increase on X.X%. year new X.X%. of X.X% the a blended quarter quarter a renewals, from XXXX at last rate rate second X.X% XX-basis point The leases, blended of July second X.X% of

we've new our January from end begin normal, pricing through expected, and June, season. leasing to steady will in as spring-summer the As peak is the rates we improvement lease of approach lease new taper our seen off as

continue at Our healthy reflect are and September rental offers increase August a being X.X%. average sent an to environment renewal and of out

last Our qualified trend quarter in the and our last trending XX.X% strong year. traffic occupancy all to XX.X% the across XXXX, supportive occupancy XX% the year. above in XX.X% of and strong occupancy of We averaged is in quarter occupancy quarter of our markets. second first versus remains XX.X% second levels a of July versus

quarter last Our second net turnover continue historically the XX% at turnover rates to run versus low year. rates in with XX% the at

to XX.X% at quarter, quarters the the XX.X% of both year in well XX% full quarter, the the low move-outs During below our versus home first for purchase XXXX. with remain

It appears put rising will homes the price damper starter home that continue of on to a ownership.

the this I'll At to point, turn over Alex call Jessett.

Alex Jessett

Keith. Thanks,

to financial on activities. recent move results and update our I brief Before real estate on guidance, a our

XXX-unit, purchased constructed, in newly building Camden in $XXX in development Gaithersburg, Cypress Rainey Austin. our Camden Camden a we a venture II, began for on the joint Street, During XXX-unit stabilized Texas, Washingtonian stabilized yield. and XXXX, we downtown schedule quarter million of second X-story construction We Maryland, Creek Houston, located generating X.X% of a ahead

XXX NoDa Tempe, approximately Charlotte land development XX approximately purchased future neighbourhood homes, also the approximately acres of of in XXX future purchased land We for for four of also of apartment apartment and homes. development of approximately the Arizona, acres in the

rate rate underwriter's offering million the of estimated On an a other deducting senior $XXX settlement average expenses side, after bond the XX-year and completed interest and in giving offering. with effective the in-place effect unsecured to approximately discounts financing X.XX% dollar the we of mid-June interest swaps of

in-place at of years at first expense of recognize swaps, for interest note, result interest recognize these X.XX% interest we the X will a X.XX% rate will As and thereafter. the expense

night of exceeding $X.XX. second by reported the $X.XX million, XXXX our funds of we of guidance Turning to the results. or operations per from financial range Last quarter $XXX.X for share, midpoint

our from quarter self-insured of costs, primarily property results other a expenses employee from second venture lower and joint combination resulted and operating same-store the from higher that approximately for better lower approximately income and levels cost-control higher outperformance healthcare general taxes, and fee in share and overhead anticipated lower in per $X.XX communities, non-same-store $X.XX resulted in from lower Our of resulting income. $X.X than expenses development property measures, net approximately $X.X

expense the X.XX%. we night, from our in Last anticipation operating of based midpoint decreased our expense the expectations for to and X.XX% upon of second our year-to-date and we of updated of guidance. lower quarter the full-year growth performance remainder property same-store our the year, the of half full-year our also XXXX and Because our year, back same-store taxes performance, better-than-expected revised

tax tax of Atlanta and being with year we property and half back in favourable anticipated appeals. are savings the received where year These prior primarily success current year Houston, the both had driven valuations have by

As increase portfolio budget. we now NOI our it is X.X% points basis full property decreased increase a midpoint result, The under basis of to X.XX%. original are point guidance to of X%, XXX approximately inside to for the our from result guidance, anticipating a year XX just same-store taxes of same-store our expense this XXXX

real-estate with increase $X.XX increase same-store incurred in $X.XX by year midpoint of This increased than anticipated an $X.XX the per results larger associated our $X.XX anticipated results we quarter, XXXX quarter aggregate This or share transactions. of FFO the outperformance our combined the $X.XX. -- the from share, with increase second anticipated and point, XXXX guidance impact bond various and of FFO offset by full results. basis to is quarters, remainder the also approximate our increase XX night, of million and $XXX same-store in fourth issuance the from $X.XX this over in operating per second $X.XX from third $X.XX our Last partially not approximately June $X.XX timing

provided quarter of earnings third the guidance also for XXXX. we night, Last

FFO our quarter to of third within per $X.XX midpoint in share second quarter to line $X.XX expect We The results. the for be with range of is $X.XX. the

are increases offering. by from sequential interest offset additional our the typical acquisition expenses communities bond operating expense of As seasonality resulting expected, are June our and by contribution incremental offset revenue and development from the our in

no EBITDA times, outstanding unsecured of at of cash a XX% unsecured, hand. our our X.X with million XX% is Our debt balance at total and remains are with credit, fixed debt $XXX X.X We unencumbered. million of sheet and coverage charge line quarter on balances strong $XXX net and of assets ratio the times. ended on to our

on-balance million developments years. under $XXX $XXX to have fund sheet of with remaining next currently the We million construction, X.X over

time, we'll the this questions. to At open call up

Operator

And comes our Instructions] of Please Nick question ahead. go Joseph [Operator Citi. from first

Nick Joseph

Thanks.

the expect it year? monthly growth. that's other rate rental how the do average basis weighted causing occupied for about your that wondering, below points at trend revenue remainder per looks revenue like then the of from you drag XX what's home, looking to it's And I'm that? the Just

Alex Jessett

Yes, is lower have debt from starting a what what That's down see when the the incremental is occupancy, year-over-year absolutely, bad on turnover, because and we're because out. we and of aren't and get people basis. just damage having higher coming impact moving to you impact cleaning fees we're

Nick Joseph

the pick that turnover continue between to to you the Are that, spread Would expect rest kind the two of year? you for of up? expecting

Alex Jessett

think At this going fairly point, we're the year. to exceptionally generally low low the we're stay of turnover, for it's levels of having rest anticipating we that although

Nick Joseph

pricing. earlier tie Thanks. you you And quarter, bought it in in pricing seeing on maybe are purchases, you the just terms And cycle what of for then what the in the saw land land more there? to

Ric Campo

have along everything with have and you. with definitely increased, what else prices Land costs

not And aren't construction have where to the it's with sense. so while price that of land making the -- the land -- projects land costs, that driven have some yields along increased, idea prices, point prices

think some sure making So, level. are I they sellers sell can adjusting and at that

rise today's they prices think underwriting So, are difficulty land as I that were today, as fast given of in the to continuing environment. don't

Keith Oden

Nick, that working is to last the we also, we've bought Phoenix the that just And several to site something on years. been that, for add

had growth where that three pricing of two in or of ago. emerging for great was reflective is an market that's and coming. sure, Charlotte have of site in kind So the getting is And the we ahead success years

we attractive for really, we well. So, got like as an a site price felt that

Operator

Please from BMO Markets. Capital Our John next question comes of ahead. go Kim

John Kim

you percentage of fees Thank us rents revenue versus multifamily and you. rents your comes retail what same-store income Can remind other items? from

Alex Jessett

I to you to it's but that. to we'll close would get back XX%, pretty have say on about probably

John Kim

turnover-related an fees is the was all were Okay. the answer question, on or there, other And Overlap]? [Speech there Alex, to income, like impact the and technology so that prior lower

Alex Jessett

turnover Yes, as I largest it, component said, the of is related.

about if you think damage fees, and bad debt. fees, So cleaning it's,

component because XXXX. of finished But it. package impact year, so that's of much that's tech and Now there incremental the in we're an that slight a the package tech getting component rolling associated slight not really out last is with a obviously we

John Kim

don't strong? expect with you to up turnover And so go being growth lease new

Alex Jessett

year, last at question tell expected go levels. would this continues we I if asked you to would have it record stay and turnover you low to us up,

Ric Campo

it Part two think a of the years, markets when people is to the to been around They or move everywhere. this being about today. trend that's of has last and a about that with in-migration move the idea much. in just do low so as don't country the it unemployment you And three lot whole way for and different rate

to of are rates. people So given don't low cities their a better the in the doing move city they're another hot to job, unemployment sort they because job jobs think in get well, have the to

you started of in around. rates and because longer keeps their a apartments that migration markets, slow just not of people lot they're kind and moving So see to different

Operator

Please Wu] [Leigh go from of Bank comes question ahead. America. of next Our

Unidentified Analyst

Hey guys, taking thanks question. good the and morning for

that or what's any driving that So lagged markets seen your about great. could extra that initial talk outperformance be markets of you've guys versus have And color the some expectations? you would on underperformance outperformance

Keith Oden

line minus would that our you I change year with you is to at guidance, here if results not, there that would I we than maybe our a with year letter initial beginning up the with through there of single is to and Leigh, our it, other not a were there. the plus grades that issue halfway one each tell a

reforecast regional obviously, quarter, tracking mean, our expected guidance. we would as do I really a our our about platform. original for from in So the we're across we second we entire

a revenue our forecasted for -- the every We $XXX,XXX. reforecast worth do quarter. on $XXX second On quarter, million we of within were

here to are charts at we markets minuses that nothing impacted the and -- relative and even the be and of expected The calling Florida top but predictable, out to So question. the the -- pluses by Charlotte, again, would worth your be predicted. most and Houston, there growth to and that there, the that's markets and then weaker pretty was that's, obviously South supply new are job

Unidentified Analyst

market expectations. Houston lease-up, little about a Great, maybe your McGowen more? you initial Station, so that's maybe in doing also versus how could development been talk guys the bit And your

Keith Oden

Yes.

So, Houston and year in one to geography competitive were that we to the were that of the gotten, have suffered of XXXX, of weaker process they the as of and of competitive because There get and delivered trying again it have the trying in the by absorbed. beginning so in projected the developments, units the we, downtown still the just that area is, all and markets existing assets be primarily nature at our set, delivered midtown new finish as the apartments the to line. get to were many merchant builders that well are

and been even is or by XXXX builders year, built jobs is XX,XXX just track create created to so a this their of that the those of product There the merchant them downtown -- one getting downtown. are and to not jobs, bit it be midtown little things, high-end midtown would jobs stabilized finish would nature mismatch have is The thought almost been of a though that and in got with a on assets the end XX,XXX happened. challenge the has of the of Most the hasn't line. -- Houston

retail, The not has the growth by construction but the have in jobs that participated is and a job extent, hospitality, certain been that created, are large, sector. energy sector to

a the seen primarily their oil mood to going are the be that's not to which in for when remains So large area of all it space, and are downtown the they're integrated just located on preponderance, office still happen. companies, hiring

You don't really ago. three to go over years to back little have a

years energy were lay counts. deal a effect to there the recency and companies later, finishing to head great off and The just increasing three is reluctance downsizing, of fast their of having people forward then start

need less, looks point the think breaking it jobs created downtown will of even numbers. start and of being you with some aggregate that kind the though support companies live energy again. the are and point doing are in to They're kind I they'll it and But area. in terms reach more not jobs hiring they, good the that midtown So that in necessarily at of meantime, rents a the

Operator

from comes question ahead. Trent next Our Scotiabank. of Trujillo Please go

Trent Trujillo

just I go morning. to back good revenue. Hi, wanted to

of So possibly accelerate further based that there lead X, same-store provided the it this NAREIT trends, through showing earlier May, and quarter rate operational historical X overtures update you some guidance. to was June at on blended would that raising could a growth which in

So up. it sounded like it had picked

revenue So did in? how given much thought you came give to half where same-store guidance, raising first

Ric Campo

Yes.

as the quarter for like we -- third top I fourth we we we've mentioned, ended the on good feel if quarter was, our did So, really -- so of on where almost for for have reforecast up that. we gone and exactly second I that based and visibility our obviously reforecast through have we and reforecast

it for with comfortable maintained we've last reiterated. guidance and guidance raise quarter. still So this we've feel very we revenue our We quarter, did that

where year end shake And terms in where a revenue will in the of the increase. so X.X% of are we're we we comfortable total think out with

Trent Trujillo

that's Okay, to I guess going then back shifting, acquisitions. helpful. And

your exceeding far? You've capital end as some alluded have to high and work indication can to what's the the to achieving in confidence range. your you that so the you all Could even put you raised pipeline that or of give

Keith Oden

Sure.

we possible interesting like this had to XX try bidder. The properties diligence, I as stages in acquisition the is be the whether billion environment. we going at And you're have in guidance excess of due going can very to guidance try looked states chart in We highest if of were to had -- terms we you be were of in the to $X your last that very, various aggressive disciplined winner. just about thing hit as acquisition ultimate always that

sort to of that, for I that going meet opportunities in think we our least the or at in and haven't at we we're some are several us issues have we What exceed it. are so And think that sweet stabilized to are looking properties better are think the -- now hopefully in spot for. have and management today we're looking confidence be we're properties for to that guidance, newer there that what looking there is

Trent Trujillo

-- that for and year-to-date the CapEx, you on spent recurring purposes, realize, million still about comfortable Okay, lumpy. realize, be $XX this One follow-up, But of spending modeling one sorry. $XX you original million to and for fully quick the with maybe I can year? $XX guidance are

Alex Jessett

with comfortable that. still we're Yes,

Trent Trujillo

you. thank Okay,

Operator

from Daniel of Sandler O'Neill. Please comes go next Our question ahead. Santos

Daniel Santos

Hey, good taking morning. Thanks for questions. my

ones two quick Just me. from

shuffle, going we promotions? Happy is one than should internal are is in maybe first changes And impacts The other host Hour, any the then any from role expect NAREIT any G&A there management on to responsibilities? who

Ric Campo

no is both. answer to The

Keith Oden

especially is Unfortunately, the answer NAREIT. no,

Daniel Santos

Fair the reconsider get nervous starting to enough, that's you And fair about enough. any in pike, future? are exposure -- there maybe where making your you're maybe sub-markets a second, supply little your consider the then down coming that's

Ric Campo

is at in growth job the enough stickiness is peak residents. and is The had very No. had positive year think We that many absorb in supply that's means moderation existing interesting start about and we to markets. estate we as have don't news we've to even find levels. able this is are in turnover peak enough, think some that that, some been cycle, real the we of that, have been markets a at enough lower all is the their good customer But base, next have supplies cycle, the fact the that some, this seeing new I that thing

without supply negative combination and in a decent you've with each having city, growth the situations absorb great able And market in that, impact. to job so been a major

great great supply, you've a job maybe And it's moderated, it's Florida it rent back markets put where example up. clearly on existing lot like growth Southeast but you've and Charlotte big damper had properties. increases -- to had a for Charlotte a is Now while of

X%, how in of a much supply think is coming very backdrop. good I maybe positive, You're that's still light X% and or on,

the us, So real in ultimately question we the where is longer are term, for cycle?

a projections people is doing result the of find job people about then jobs. of threes, inability and the jobs get concern rate the out a do the actually add question further, the an And lot but slowing you how -- look available the you there jobs? to economy when at There's the of is with and of you those growth, where take job ability do unemployment of to to people as find well, growth in

Heretofore year, we've had, workforce, at out really good to it's coming generally been and fill there is, the has last well-absorbed. the people you, the what least -- have But back and those jobs. of been supply into

Daniel Santos

it that's Awesome, Thank for you. me.

Operator

next Austin Capital comes ahead. go from of Markets. Our Wurschmidt question KeyBanc Please

Austin Wurschmidt

Hi, good for morning. the time. Thanks

So I to want call. to go quarter's back last

lease discussing than wouldn't As lease see improvement we expectation rates the and also June fact new much new were achieved and strong. X.X% that in seemed April, but significant May, push the you rates in did higher in you

So it outlook. I new X% in tracking lease as higher I'm rates initial I offset like seems you're lease line from in with that believe above rates, you may benefit pretty the assumed curious the to expectation, your have blended what X.X% and guess that also the renewals much are

Keith Oden

Yes.

guidance total of in So assumes were quarter. we're, of the X.X%. growth first We revenue our growth X.X%

we're at little Austin Houston, It's and sub-markets Charlotte, too a those a is looking and we And backdrop being when also markets, that just see markets, little in think that of, bit is with to takes the of in we expect of markets of some constant that continue it bit South particular in to the in and XXXX. just signs four you're of delivered toll. some out. and fact our do reforecast in and that So some seeing point obviously clearly that supply, we those, I throughout in many the balance apartments -- where new beginning a Florida, competitive our

this expect. rates you're probably blended of still you're modeling, plus help. end the news third the that clearly guidance it we on last and X.X see the the continue of we total print But, another simple top maintain we of that's of and through some in quarter. when growth average you're our fourth to markets rates, blended X.X, third if the the but good revenue growth all total through is have going shake But done. terms we see to Now are we maintained say X.X. moderate doing at and it quarter. pretty couple quarter it's revenues that on we in our raised in in math think are years, we what is rental And first have job those X% get you to going to that deceleration we The had and of year heads the what could deceleration And and we fourth will in X.X% and well to and

Austin Wurschmidt

Yes. there. thoughts bit little question. appreciate And leads next the my a I into that kind of

little out, a your into And in forecast And and are out gave the wasn't what out first here am second initial 'XX a shaken how then you from half curious in playing -- Ron delivered 'XX? 'XX then today, how glimpse bit played delivered Witten's projection of perspective? for well heretofore, what the as were was I we how sit versus XXXX gets and ultimately as expectation? just You 'XX And supply but 'XX as half? in assuming

Keith Oden

Yes.

XXXX the XXX,XXX he about ends has who go had across months deliveries The of that So in on at XX as had his plus you were -- XXXX. used he a spot mentioned, completions prior XXX,XXX at minus back that, which you for which it platform, primarily platform, what we being Witten, apartments. and was if actuals almost XXXX, for consequence than was currently just rolling up about XXX,XXX bit about, off into a by with X,XXX He right. less XXXX we our is or our again. little original a on, delivered XXXX across

but actuals deliveries two of in being and everyone up aggregate and was whereas identical deliveries in our in the shows for we to XXXX. he's projected Where pointing sort were peak the portfolio as almost So nationally, it platform, XXXX that thought platform what is out our pointing of now, there from in that to, is around would play movement years, well. we to XXXX across Camden's

XXXX new going which the starts for going XXX,XXX and looks that we're from across, XXXX, rolled our or to back to up clearly 'XX, XXXX, -- of XXXX, reaching to huge it like is coming, from to X,XXX from not be across has numbers he down Witten's and the on peak. 'XX finally X,XXX He's has for now X,XXX a XXX,XXX, that I is them some peak 'XX X,XXX coming amount. rolled based platform. But deliveries another got hope actual but in rolled

around So, the XXXX. from And XXXX. deliveries somewhere XXX,XXX we around the 'XX and have 'XX I to -- I that very continue continued, peak -- completions throughout rollover something in likely going hope think that of to it's will we're see

Austin Wurschmidt

delivered percent XXX,XXX half in numbers? be what the second in the And of absolute of expected is XXXX to or year the

Keith Oden

I have whole the in in how -- of with front I where but lot what there's we if me, I'd Denver. pretty equal it it's surprised our mean not that and exception a be of of Yes, don't seasonality across platform build, wasn't

Operator

comes from Haendel next St. question Our

go Please Mizuho. ahead. of Juste

Haendel St. Juste

there? land in currently and purchases an talk type you yield on in ballpark follow-up earlier Tempe, starts the Charlotte the you actually projecting new Can bit development about timing a wanted of of are little question. I for what the to

Ric Campo

when this for and Sure, units next will toward end those to get of it. starts, the year and beginning be year you XXXX of the, mostly the starts down

in X lot rates. cost they're were discussion book because faster yields, going X business, our up of about suburban. yields our rental and -- on yields on In there's increases high-rise just some you urban And X.X, to roughly than of about from anywhere pipeline In terms color, now X% X.X% were a the our our of development X.X. last are yields, give of to our about to and compression yield been the ranges

Haendel St. Juste

so expense that? maybe Okay, projecting rents I'm that's projected what me increases type color you're helpful. of protecting But the you're stabilized maybe of tell you part could and on assuming yield there, the some as --

Ric Campo

about the talking in you're rent Yes, increases development?

Haendel St. Juste

Yields, I'm embedded you assuming curious quoted, yields them. what just within stabilized

Ric Campo

Yes.

what rents is we're we of those and generally is inflating X%, current -- market. it un-trended said, do on operating returns them pretty and the in the we gave just the One returns but I do max, X% analysis. generally is expect we where X% are So as are to I at increases and And that, returns what to you. we're methods more anywhere our rent given much And X% depends well. X% and market, two not or other than we like be, the between I think inflating are, at the much X% costs, the

Haendel St. Juste

Okay. the I'm curious about Charlotte development in particular.

I'm supply on project that specifically that commentary? that about to earlier commentary in of light market, curious what Given revenue the gives you guess I earlier the confidence and weakness the you mentioned start relative your

Ric Campo

that it's start 'XX. going the downtown a as and basically we're earlier, in which Charlotte. NoDa, on Keith -- said the project on of Charlotte January And construction rail is and Well, it's noted to north line of

we the today, ones on another other really this where in into not very would the are market it 'XX, a the 'XX. positive into and effectively of us so great or the And way the And to while, time and reasonable absorbing end fundamentally our yield will Charlotte. project until market and will, is it's rail in going which be think absorb line, the it that for given asset deliver middle markets over it's some of while of Charlotte that with 'XX, best issues that absorption, it's now market one having

Haendel St. Juste

may. on the missed could That's it of helpful, if earlier, maybe yield thanks. share And any some there? longer-term don't there acquisition know operating color upside, and one last initial one the maybe some Thanks. I I I if but is if you Austin the for

Ric Campo

So, our we buy were trying to models.

definitely Our the this, acquisition program it at categorize we not perspective are from that stabilized are, then -- today that would a have buy assets either Austin and lease-up that and And is been that. to asset, between where and cash and technology to a then our below we then drive XX% in, upside management having in, XX% cost, up. and drive, packages replacement cost, replacement can be our bring bring flows below somewhere team

generally four-and-a-quarter-ish, within get of low be packages existing rates of cap -- management Within looking that's and we'll that rate a to model technology try. So revenue couple the fundamentally much up of in pretty we're for, we the is cap and think terms kind are able of, Camden years, implementing the we're going it theme of to is. to properties kind and be going Austin where buy in fours, to That you're what a systems would you. five by and have that

Operator

comes next ahead. of Babin Drew Our question from Please go Baird.

Drew Babin

is maintenance on our to in maybe us CapEx, development high influencing kind that kind estimates, second year, remind basis guess the that I influencing costs, ran factors a it of trends. sign of a quarter, is there per-unit and this a The of Question little it's you on think a of relative same CapEx, budgeted could kind is? per-unit you what and number for if

Keith Oden

Yes.

tell So is entirely you based. what timing it's would I

anticipate range. million guidance, So, right being was and if of that in it you looked at $XX $XX we our original million,

model, second your issue. to is the a So, timing quarter, as just you in bit what a little of saw probably compared

Drew Babin

some there. question there. on is the rest a fluctuation that or the types that Obviously there has maybe adding been And is can -- market market helpful. you what hoping in belt. market of And bring supply hot that's there activity as was jobs growth your could Can factors some maybe Okay, Just like give you that currency get Florida obviously possibly who the in? sun again? something job talk maybe more Southeast going the might about color of I as the and based experience on a that's

Keith Oden

Yes.

So Miami, I job for XXXX Miami and end you into thing Same think growth of Witten's take got XX,XXX Witten to or little XXXX. XX,XXX me jobs at -- drops XXXX. Lauderdale, if jobs going in -- numbers excuse jobs projected bit this year, in XX,XXX a for XX,XXX, Fort that has

what two is not the that's of you of condos Miami delivered just been amount kind think new that of Fort is been and but those competitors, apartments, our of rental is for-sale in just the direct in Given, which supply across both CBD's number crazy. and, have Lauderdale, delivered

in show both doesn't -- doesn't those it a significant up employment on the necessarily really up is stats to in completions. factor But growth markets. it show it compared of So

for-sale hospitality not growth the just continues big to to But continues activity, just I in also I construction Lauderdale product jobs, the think of construction jobs I be residential, had equation, that and just a it's absorb be Miami, to of of both Job think because for-rent character supply of piece construction the try don't it's amount the to there. the activity. and we've all markets. the commercial Fort don't, of but

Ric Campo

there have come given and there into call times Florida, currencies it and changes that, the of To volatile point or when to valuation flight Central have the South Southeast you America. folks think have an sort currency has seen it's down, I of is, you, you capital of that on what your there if And capital want impact of definitely is market. been are issues America, there

that very competing talking American of are lot the some expensive currency. are are people in actually trying condos apartment or get a apartments are just is lease Keith generating hard with that just a South that condo cheap, order about And currency owners hard that

it an a term, has headwinds few interesting market, is just right it's Long great So now. but it's market. a

Drew Babin

the San have the product kind you anything And part own a more you those still softening of Okay. seems near first and of rate been the year maybe upper that trends growth, The decent continued? it. Diego, where looks two's. and or County, you what and in That's markets? pretty growth kind in rental the quarters, than peers, of you I have seen rental like of guess, far the last occupancy do performing quick not but expect trends, to couple growth all that rate has the third it of just well or revenue performance so gains last market in would marginal So own kind your of California, question on Southern kind as in indicate in any helpful. one better kind obviously of of in still quarter Orange

Keith Oden

of mentioned, most -- and in San we LA-Orange as a our our have you think platform, I geography do. that different Diego than that little were bit County comps

modeled two the I think that the quarters we that for strength strength. was that seen we've last

when both, it gains think I so to the on in platform. entire been out you occupancy continue. look our going had looks reforecast, that's but markets it's And we've like Yes, both across those true our

XX% we're XX.X% is, unusual is where little prepared doing our from across pickup that you Southern really it's XX% toward in our with much gave less feels July of occupancy, know many range that a years the number but much all that's a it looks phenomenon, just so in the portfolio. trending is which operated so preliminary California long XX.X, to the platform. XX, us, this I think to unusual of as years And the of in for not -- be really occupancy I we've the a remarks entire pretty in bit like in it

Drew Babin

that activity, into far I are quarter as the budget? as pretty with take So much I mean growth third leasing far trends, on rental so target

Keith Oden

are. They

Drew Babin

Okay, Thank you. very that's helpful.

Operator

John Our Please comes Street from go next of Advisors. Green question ahead. Pawlowski

John Pawlowski

Thanks.

acquisition the the front, criteria? your have quality portfolio would multifamily met On Pure

Ric Campo

was we and an have It today. about. an interesting concentrated number point. definitely It that the our quality the was one, not it that it evaluated us was print, suburban wise. sweet kind portfolio challenge number we're properties of existing Dallas met two, it highly at really with are some interest was in that spot with We And this and at wasn't portfolio in pricing excited for looking it -- criteria would

issues traded that it lot sort ever would pricing wise other and there -- ultimately of aggressive a been it and were not there at. around of as So we

John Pawlowski

portfolio markets a And matter. now? appetite? what question know right is I broader pricing just then and deals do the matters the just on portfolio larger to appetite acquisitions, is What

Ric Campo

a product portfolio, it we'd For large fine, the be be, in the would transaction. right doing right

the Keith in I if would, it, good Pure, not think a Pure example of to challenge on three he have whole I would portfolio properties question wanted are answering there transactions, say we would that is this the we you that buy. probably large think with and have was asking -- this

If other criteria acquisition was on an from and where perspective. be, might it. if too, in had the could hand, there your thought pricing to was strategy you wanted you change be Now the change to value you it your you

want. with to I have them have they to to think the to have that having the how them much, fundamentally then really challenge something you you pay you of ones that in them have tend just Are kind that you with think get want you price be to don't don't what is question so to in to out buy? the And to the you really assets you percentage take -- move do want want. want portfolio the And you that And you you of of other what to portfolios are is then you a where that buy, what trading going future? buy? are around can you either is

XX we or going like on billion to be times highest $X.X often projects we Pure these portfolios that on, $X buy. and to billion see a to properties million we're the wanted So, that want let's, just of we of $XXX buy properties if had, bidder go,

and is done strategic pricing that is of to that's don't, me, a we a you the you're want a so, around is of of very today. large a just, we the get It's that kind pricing in robust kind premium something transaction there to do for probably unless portfolio why seller a so while. it, today for good or And actually business, you there's large if haven't everything

John Pawlowski

too Okay. consider Is market you'd ramping right any the irrational dispositions getting now? in or pricing irrational where

Ric Campo

irrational. You know what? I don't think it's

we're multifamily I reduce fundamentals at to oversupplied and that seen have a head-scratchers. will or in from think, even I that other map reasonable people certain are oversupplied they're growth in seeing properties, just their extent, because perspective. on continue lower to on because real requirements haven't in, rent Pure the or these when return even you that look the be markets any that like math

five have cycle. the we've to four year to comes and lot it year old over out this traded a well. dispositions of dispositions, development last, as And in When for -- the sold funded fund last properties in to assets used range properties we newer XX-plus

is we got part don't sell lot so so get And of the felt right I But-- think we have really to it. so don't, I like assets don't in there with market now. want irrational a pricing-wise we to into I and that that

the going to, prices able going or and redeploy do be question rate down think go And that interest given flow for make so case the right given can the the Because recovery, we we're and when is, cycle you hard it, you now. apartment it's rates given sell into are capital? to, the to for business, to in, fundamentals of to a cash cap length dramatically the change really

be no. So the would answer

Operator

Our ahead. next Please from of go Ford MUFG. question comes Karin

Karin Ford

to wanted be transition. And your should we the of as part planning? thinking Ric, I management ask succession how Should near-term expecting about changes management tenure? the more we be about

Ric Campo

or quarter So don't something you after should the anticipate think next I quarter that.

and me, next by call quite So I that do for Keith day. are the I'm XXth But we this right is didn't have and birthday while. than planning been a do a younger I week, -- Keith's in -- way. succession so mode we've conference my the glad and on

Keith Oden

And be. always will

Ric Campo

be. this. older he Malcolm probably And So is hit really slightly I is -- He me. me saying actually to will than know, going for

when in to, Camden tier you they're planning, about going right So have about think I of like management. And all internally think when think about, I grow are now. to with succession you culture Camden, our we a especially next

long had I a long-standing succession time, Keith have, a our and plan with and So for board. have

and asked it. this know the have some we question about them I call people on told a So, and specific

of we are Ric the to basically sent to Board commit at we stay to year, going a letter beginning each and that it's for So a Keith three And says, three-year year the the term. that years. that

at who least If stay make fulfill then still stay. it don't, through health transition. it a to if we the don't make agreed something issue maybe that a they or that doesn't The or to that, person fill like years it I -- X-year, Keith X agrees didn't so doesn't there that reason person for commitment, is

are experience transition. us senior get to a allows space of and healthy, our being positions now love our ultimately on for that and structure, much as The us Camden, they, for while. organization, question we have we is, creating areas not may most experience in, the more people both we and So in plan which they in here love that

fundamentally to that? have that So, the transition and that Camden them that and well thought-out sure it's the I don't our in now, we of Is year, they is after year after, to want next at it Camden. we year make going generation know, stay believe future. but at we the program, or happen a leadership, next

sort that's space so reasons in the, opening of up the the one for the And the of of titles.

Karin Ford

then Okay. in line planned. question you're second That Washington as decelerating sounds plan. and XX basis than quarter better good. is And performing with NAREIT at points ended D.C. It my in the is called now you second saying out up everybody

from HQX starting you see So has any D.C. fallen at impact to all? And are off there demand yet?

Keith Oden

D.C. the X.X% second was it revenue our at portfolio. in for quarter, fifth-highest which growth, So would as the in our place

been next out would have D.C. the I one top Metro. have the been four, called So would

XX be world been it's since fifth, which and time our, in it top five. out of would D.C. in long have the Camden's markets, a Metro been So

NAREIT. know quarter But So, is the Metro X.X% not good I'm world in in a the -- in, comparison the to D.C. for really about I the quarter. don't our NAREIT,

on would our team on quarterly our Metro I've the constructive three commentary we four staff years. that with update most D.C. Metro that D.C. call positive our, on operations I is that the conditions, or out you tell probably get tone from operating our, of And in heard to the an market and do

just DC with our me Metro in a to Metro most our of that performance geography two of our for do our over outperformed years that and has continued has in last lot well all versus bodes the the three portfolio, group, good a to So area lot to of peer D.C. which peers.

Operator

Our Hardik go next comes of Goel Please ahead. question from Zelman.

Hardik Goel

about were wrap allocation thanks of questions, kind just and think wanted guys talk taking just question. different you I and of my I guess, together bunch of for it. that guys, kind already capital through to a Hey, asked how

hard really stay aggressive disciplined win You guys want have environment you the and talked deals. about being acquisition if to to

but You pipeline. today term, dollar And also think the XXXX? option What more? it? in to specifically pre-development invested and is how here filling like were starts build Is incremental longer do to do outlook about your your the what in you with

Ric Campo

the -- the definitely development spread a the and development if we would if just acquisition pipeline the pricing we would we and be wand dollar, err can't Well, make wave between given on -- if would, incremental the development, could make larger, side. we development, we

year, and So the have this the too, be $XXX next year, million. we next of Charlotte would and have of -- year million we late that between Phoenix project $XXX sort those project are

I'm $XXX in, in Atlanta, one this and California, it's with two in in and with one And our, Florida, one then year projects late million. the -- starts one sorry,

you should together, and the end start of through 'XX when 'XX. start million add $XXX So those two between that or that's could

have again, we would development-oriented development projects though a I -- actually the than is acquisition-oriented, that definitely think be But that with challenge we even cancel. more getting

those, pretty to try up we them So in that the we we'll and why fives. two, over of environment dramatically, find get so years can sort of this the a a diamonds do those couple up combination rough of that's the drive earnings in growth can into

Hardik Goel

response. detailed that for much so Thanks

about construction Or where when a development follow-up, quick few are there really and in less? markets the increasing be a others. kind are that costs focused where less construction Just very of markets, do you're peers markets, case-by-case of markets We hear the it project-specific? burden think is or a are can is in in some that difficult on easier that Which from they're today? your you

Ric Campo

each to but, the issues, definitely other It in time. of of think build think can't and it market California, in workers. can is of cost those the of we I all the trying we market But there's sort that that something. operate construction we're to markets. projects same and any you in think markets lack unique, California more of construction work. those easy -- there find terms is longer don't definitely of I there, markets where all numbers in are because takes or, today market find difficult than make That's in And or the because probably some a I

about at project California a that end or year we've that for this longer. for three next it the talked of been The year, years, I or or on early four start working

could a we're to capital on And it's hard core we generally would on the And nail is making isn't that get our investing think in we're everywhere. hit discipline that that the the where reasonable pipeline, that, I we so could sure and constrained, if we yields speaking, not expand if return the at build that's that you head, guidelines. incremental

Keith Oden

and hard pressures build yield I'm Southern is, underwritten entitlement not it you're guessing referring they're Because hearing hard cost easy in, cost what Texas, as the to There's our when you're trying are to process, that peers the makes significant and -- relative in to pressures. probably from sense. about Houston, California. that to achieve

regulatory the regime Houston. process and hand, a other the versus the entitlement different California in is On actual animal

have the hard and California to to way. some and that trying But or to entitlement Texas of easy, with we're array, others significant just operate start would on but probably our the to the you with it's, an process, real XX cost all array pressures would them in. across along -- put then spread would of have relatively markets are And the there So, end easy you be markets. would

Operator

of from Anderson question comes next Please Our SMBC. go ahead. Rich

Rich Anderson

what's would But you I that to consider the like so say, amount as was to if would Hey, It I private, I you the comment for where to private, true would another, ask question, you have alternatives thing, merger, succession, career for to is improve ultimately of be you at I levering and answer like eyes, completely would where portfolio two but the or the are going be thanks, doing closing this, succession have Camden type bio, for financially spry sort you, of up, you. But And in guys last end things to time your were -- table a the which off if question. since point? I reverse a been the I sort your some your in combination? this was buyer I'm of or when game and go wondered great. some assuming? are out Keith's sounds reading that. public-to-public on those guys I'm going hopefully -- be could when reverse to credit remarkably Or you've start the answer, not Are just other you

Keith Oden

I right? think unrelated to they are succession, totally

Rich Anderson

Yes, fair. that's

Keith Oden

you with shareholder or Yes, assets, marketplace do connect then indifferent you or issue is And return, Camden drive compete -- as that I the or issue because for the is transaction what never a either total to how and financial how you me bad a to or issue. succession Camden one in an entity, of -- shareholders. would good

of maximizing about in I returns. ability when that -- about top the think Camden of have think marketplace I as shareholder, the Company and to a, and So think -- the longevity, CEO-Chairman effectively I and the compete the quartile large to in to be

could And private drive public we transaction, we or would a any it. so if there do transaction that objective, transaction, then was where a or

plans. own that transaction each of, my to you kind they're Keith related issues definitely each think or longevity has mentioned not things. own and and I succession their and risks spryness or But

ultimately now great for years. and created and XX on I great returns a been long-term -- business. going long-term We've shareholders lot had think the is doing have years, it value so a almost, of this business XX great for a And over

but question about company, How, a continue. I be will Camden it the perspective. do think as we to what think the ultimately we unrelated do from I or that does what what

Operator

over would question-and-answer closing the to concludes for I turn Ric Campo like This conference to our any remarks. session. back

Ric Campo

in the Great. circuit rest your and and summer time Well, we'll appreciate you the I a the great today, September. see consideration. Have of on

So take care, thanks.

Operator

is conference you Thank for now attending today's presentation. concluded. The

may now You disconnect.

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